2- Wheeler Company, a small company supplier of computer parts, is currently producing a new computer unit. The company has been producing 150 units per week and factory overhead (all fixed) was estimated $1200 per week. The following is a schedule of the pay rates of three workers assigned to new component: Employee Hourly Rate Claney D $6.00 Lukan, T 8.00 Schott, J 7.00 Customers have been calling for additional units, but management does not want to exceed 40 hours per week. To motivate its employee to produce more, the company decided to institute an incentive wage plan. Under the plan, each worker would be paid a basic rate per hour, as shown in the following schedule, and premium of $1 per unit for all units when the total number exceeds 150. Employee Hourly Rate Claney D $3.5 Lukan, T 5.50 Schott, J 4.5 The first week plan was put into operation, production increased to 165 units. The shop superintendent studied the results and considered this plan. Production had increased 10%, but the labor cost had increased by approximately 23.2%. The superintended requested permission to redesign the plan to make the labor cost increase proportionate to the productivity increase. Required: Calculate the dollar amount of the 23.2% labor cost increase Give an opinion, supported by figures, as to whether the shop superintendent was correct in assuming that the incentive wage plan was too costly, and discuss other factors to be considered